Africa-Press – Uganda. The Insurance Regulatory Authority has urged insurers to be on top of their game, to beat claims fraudsters.
Speaking during the 67th CEO’s breakfast meeting at Serena Hotel in Kampala, IRA CEO, Alhaji Kaddunabbi Ibrahim Lubega said while fraudsters are smart, insurers must beat them to their game.
“Fraud is real and we must do everything at the right time to deal with it. Fraud is digital and we must know how to tackle it. Fraudsters will continue to operate but we must be ahead of them and if we can’t we must make sure whatever they create we close it,” Kaddunabbi said.
He said fraud studies have shown an increase in fraudulent claims, noting that while some are detected before payment, others are only identified after payment.
The chairperson of the Uganda Association of Engineering Valuers and Loss Assessors, Geoffrey Ssewakiryanga said fraud in terms of claims takes various forms which have been changing in the past few years.
“The fraudsters fake accidents by bringing cars involved in past accidents put them near each other and take photos, forging documents to make non existent claims. One with a genuine claim can claim for shs50 million. Some fake injuries to make claims while others work with officials in the insurance companies to sign off these fraudulent claims,” Ssewakiryanga said.
“Now that insurance has gone digital, fraudulent claims too have gone digital. Some use Artificial Intelligence to forge signatures and make claims.”
He however said, loss assessor have gone a step ahead by introducing software which can be used to detect fraud.
“There is a software we can use as assessors to link such documents to fraud. We also use AI to determine fake claims.”
However, the Insurance Regulatory Authority CEO encouraged underwriters to maintain a fraud register.
“Sharing information about individuals or entities involved in fraudulent claims helps track their actions across all insurance companies. While fraudulent claims have risen, genuine claims have also increased, so it is important to note that not all paid claims are fraudulent.”
He underscored the role of loss assessors in this fight.
“Many loss assessors are trained in technologies that detect fraudulent claims and improve underwriting at the initial stage. However, their presence should not delay claim settlement. If a claim is due, it must be paid promptly.”
“We encourage loss assessors, underwriters, and all stakeholders in the insurance ecosystem to deploy digital interventions that reduce turnaround time for claim assessment and adjustments.
